The correct option is
B 1:2To forma square inside the square, take a midpoint on every sides of square and join them to form a square.
As PQRS is smallest square of □ABCD.
So, P,Q,R and S will be midpoints of AB,BC,CD and DA respectively.
AB=2AP,BC=2BQ,CD=2CR,DA=2DS
Suppose sides of □ABCD is x.
∴Area(□ABCD)=x2
PS2=AP2+AS2=(x/2)2+(x/2)2=x22
∴ PS=x√2
∴ Area(□PQRS)=side2=(x√2)2=x22.
∴ A(□PQRS)A(□ABCD)=x22x2=12.
A(□PQRS):A(□ABCD)=1:2.
Hence, option A is correct.